S&P cuts Iron Mountain outlook to negative

Standard & Poor's said it revised its rating outlook on Iron Mountain Inc. to negative from stable.

The agency said that the outlook revision is based on the company's high debt leverage with no imminent prospect of decline and its contemplation of returning capital to shareholders.

S&P added that it affirmed the BB- corporate credit rating on Iron Mountain.

At the same time, the agency said it affirmed the bank loan and recovery ratings on Iron Mountain's senior secured financing, noting that the company has added $110 million to its $300 million senior secured term loan due 2014 and $190 million to its $600 million senior secured revolving credit facility due 2012.

The company's expanded facilities, which now total $1.2 billion, are rated BB+, two notches higher than the corporate credit rating, S&P said, adding that the recovery rating remains 1.

S&P said that the ratings reflect Iron Mountain's high debt leverage, history of debt-financed acquisitions, aggressive financial policies and the capital intensity of the records storage business while these factors are partially offset by Iron Mountain's leading position as the world's largest records management company and fairly stable growth from existing and new customer accounts.

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